Rendite_Fuxx (@Rendite_Fux) on getquin

Rendite_Fuxx

@Rendite_Fux

10Mon·

Another bargain that nobody seems to be interested in (yet).

Let's see if that changes at the beginning of next year 😉

27.12

Hormel Foods

Bought x52 at €28.89

€1,502.28

8 Comments

Rendite_Fuxx@Rendite_Fux

10Mon

@Epi Well, investment idea... 😅
First of all, Hornel Foods is a food company. It produces and markets many branded foods.

With a market cap of 2 billion, there is still some room for upside, which makes the company more of a small to mid-cap.

In general, some sectors have not done very well this year. Healthcare and biotech were not too popular, nor were consumer staples like Hormel.
Hormel's growth has been quite slow, and margins cannot really be increased.
The chart also shows a terrible 1-year yield. This means that the company is now as cheap as it was in mid-2018.

And now it's getting exciting 🚀
Because I am betting on a turnaround, as the company is fundamentally healthy and the business model is stable.
Dividends have been paid for 96 years and increased for 57 years, which gives Hornel shares the title of dividend king!

More precisely, I am trying to exploit a "window dressing" effect. This means that active fund managers are throwing poorly performing shares (Hormel is one of them) out of their portfolios in order to improve their annual financial statements. According to the motto "What, we didn't have these loser stocks in our fund".
At the beginning of the next year, these very stocks often rise more strongly again.

If this increase does not yet take place in January, I am also prepared to hold the 3.5% dividend on Hormel shares for longer until they recover 🙂👏💸

•

Rmann@Epi

10Mon

Very nice, an unknown stock!
Why don't you write something about your investment idea?

•

View all 3 further answers

Hugo_Offiziell@_Hugo_

8Mon

Good hand, figures and outlook were top 👍🏻. If the downward trend were to be sustainably broken, you could get in 🤔

•

Rendite_Fuxx@Rendite_Fux

8Mon

I hope that the downward trend has been permanently broken. Let's see what the future brings. A sustained upward trend is perhaps a little too much to ask for a company with low/slow growth. For me it was more of a turnaround bet, so I'm trying to get in cheaply and paying little attention to the falling or rising trend 😊😅

••

Gomerdoc@Gomerdoc

Another reason to buy is the dividend. This has been flowing without interruption for over 90 years and has been climbing since 1966! And the chart since 1988: bottom left>> top right. It's for long-term investors (my strategy) and not for market timers. So it's for people who are guaranteed to get rich, and not for those who want to get rich quickly and might just make it.... :-)

••